iPaaS (integration platform as a service) is a suite of cloud-based tools that connects applications, systems and data sources across cloud and on-premises environments. It lets teams build, run and monitor integration flows with prebuilt connectors and low-code tools.
Companies use many applications to run their business processes. Sales, finance and marketing teams each work in different software. These applications must exchange data, and manual transfers cost time and cause errors. If you run an e-commerce site, you probably connect several platforms already. In this guide, we answer one question: what is iPaaS? We explain how it works, its features, benefits and use cases. We also compare iPaaS with PaaS, ESB and SaaS.
iPaaS is a set of cloud services. These services develop, run and manage integration flows. The flows connect any mix of on-premises and cloud-based processes, services, applications and data. They work inside one company or across several organizations.
Large enterprises that run many systems use iPaaS to integrate data across on-premises systems, public clouds and private clouds. Companies then share data faster and offer better solutions to their customers.
iPaaS emerged as a response to application and data fragmentation. Companies add new SaaS tools quickly, and each tool creates a new data silo until someone connects it. For a broader view, read our article on what an integration platform is.
The iPaaS vendor hosts the application servers and the data. It also provides integration tools and middleware. Many iPaaS platforms use prebuilt connectors, maps, business rules and transformations to define how systems interact. This speeds up the development of integration flows across the organization.
A typical project follows three steps:
A retailer, for example, can connect its ERP system, its CRM system and a cloud storage service this way.
Some iPaaS providers also offer custom development. Examples are modernizing legacy applications, creating social media integrations, business data management and mobile support.
Imagine you organize the garden of your house. You choose what happens, how and where. iPaaS acts as the coordinator. It takes responsibility for working with the carpenter for the chairs, the electrician for the lighting and the gardener for the lawn.
iPaaS solves application integration and data integration problems. Businesses have always used different applications, and these applications must work together. In the traditional method, people exchanged data between applications manually.
Modern businesses find this method slow, complex and costly. They need a seamless data flow between applications, software and systems.
iPaaS meets this need. It integrates on-premises, cloud and hybrid applications, automates business processes and shares valuable data securely. In a company where sales, marketing and finance use different applications, iPaaS makes daily operational work much easier.
iPaaS solutions offer simple integration tools that need no advanced technical skills. They also give IT professionals tools to design and deploy advanced integration flows. The most important features are:
iPaaS software offers prebuilt connectors, business logic and templates. They simplify the connection of systems, applications and software without custom integration development.
Most iPaaS solutions offer a low-code or no-code environment. With drag and drop interfaces, users create and manage integration flows and workflows.
iPaaS platforms often include data transformation and mapping technologies. Users define custom rules and mappings that transform data formats, structures and values as data moves between applications. This keeps data compatible across systems.
iPaaS organizes the flow of data between multiple systems, applications and software. It also automates the workflows around this data.
The developer tools of iPaaS help teams create complex integration flows and customize them.
iPaaS solutions support batch and real-time data processing, so teams can meet different integration requirements. When someone updates or enters data in one application, the platform updates it in the other applications automatically.
iPaaS platforms give teams one place to create, manage and track integrations. Teams can then automate the data flow between different applications and siloed data sources.
Other features of iPaaS include:
Integrating many cloud systems overwhelms enterprise IT teams. An iPaaS platform helps businesses build integrations easily and quickly. The main benefits are:
Teams use iPaaS to work faster and more efficiently. The four main integration types are:
The Top B2B Integration Challenges
This integration creates a real-time data flow between the two applications. Sales and marketing teams then decide based on current data. A sales representative can see when a potential customer is ready to buy and offer a personalized proposal.
Connecting the ERP (Enterprise Resource Planning) system to the CRM synchronizes data between the two systems automatically. This accelerates the finance workflow, removes manual data entry and reduces errors.
SAP Integration Suite is SAP's own iPaaS offering. Companies use it for EDI and other cloud integration scenarios. Read our guides on implementing EDI with SAP Integration Suite and on the capabilities and functions of iPaaS.
The table below summarizes how these four technologies differ. The sections after it explain each comparison.
Technology | Main purpose | Typical deployment | Best fit |
iPaaS | Connects applications, data sources and processes | Cloud-based, links cloud and on-premises systems | Integration across many applications |
PaaS | Provides a platform to develop and deploy applications | Cloud | Building custom applications |
ESB | Routes and transforms messages between enterprise systems | Traditionally on-premises | Integration inside a company data center |
SaaS | Delivers ready-to-use software over the internet | Cloud | Running a business function such as CRM |
iPaaS and PaaS sound similar, but they serve different goals. PaaS gives development teams the tools to build and deploy applications. iPaaS focuses on connecting data from different sources instead. It links websites, data sources, applications and interfaces.
PaaS tools usually require coding knowledge. Many iPaaS tools offer low-code interfaces, so users with less technical knowledge can build integrations too.
An enterprise service bus (ESB) can integrate with cloud applications, but it traditionally runs on-premises. iPaaS runs in the cloud. Because iPaaS is cloud-based, several users can access it at once, and teams can add new connections between applications as needed.
An ESB depends on hardware. Adding a new application in a company that runs an ESB can take a long time, and hardware limits how many users can access it.
SaaS applications are services that live in the cloud. Organizations use them for daily operations. iPaaS connects these applications and integrates the SaaS data of an organization. It also links on-premises and cloud-based services, which SaaS applications alone do not do.
iPaaS does not fit every situation. If two applications already offer a built-in integration, you may not need a separate platform. Custom integrations or manual processes make sense only for very small setups.
Before you choose a provider, ask about its security measures. Check encryption, access controls, certifications and audits. Confirm that authentication and authorization work in every system you connect. Monitor and log iPaaS activity to detect suspicious access.
At MDP Group, we developed MDP Integration Platform as an iPaaS solution through our integration consultants. MDP Integration Platform acts as middleware and offers on-premises and cloud-based installation options. Its prebuilt integration packages speed up integration creation, workflow automation and data flow between systems. It also offers strong security features, advanced data integration and transformation.
iPaaS stands for integration platform as a service. It describes a cloud-based platform that connects applications, data and processes across cloud and on-premises environments with prebuilt connectors and low-code tools.
PaaS gives developers a platform to build and deploy applications. iPaaS connects existing applications and data sources. PaaS usually needs coding skills, while many iPaaS tools offer low-code interfaces for integration work.
No. An ESB routes messages between enterprise systems and traditionally runs on-premises. iPaaS runs in the cloud and connects both cloud and on-premises systems, which makes it easier to add new applications.
Not always. Many iPaaS platforms offer drag and drop tools for simple integrations. IT professionals still use developer tools on the same platform to design advanced integration flows.
iPaaS connects your applications, data and processes in one cloud platform. It replaces manual data transfers with automated integration flows. Before you choose a provider, compare security, connectors and deployment options. For more information about MDP Integration Platform or your integration project, contact us through our web page.
SAP Integration Team Lead
Hasan Fatih Ekşioğlu is an integration expert in SAP PI/PO/CPI. As the Integration Team Leader at MDP Group, he leads projects focused on the integration of SAP, non-SAP, and third-party systems.
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